Sensex Today: Indian shares weakened slightly in volatile trade on Tuesday, as gains in autos and banks were offset by IT, with decline in Asian shares aiding fall. The 30-pack S&P BSE Sensex gyrated 1,027 points during the day before settling at 59,031, up 257 points or 0.44 per cent. The NSE Nifty50, too, closed at 17,578, up 87 points or 0.5 per cent. It hit a high of 17,626 and a low of 17,345 during the day.
RIL, ICICI Bank, M&M, SBI, Kotak Bank, Bajaj twins, Bharti Airtel, and Titan were the stocks that supported the indices. They rallied between 1.4 per cent and 4 per cent. On the flipside, the stocks that put pressure on the indices were Infosys, TCS, HDFC Bank, HUL, and HDFC.
In the broader market, the BSE MidCap and SmallCap indices added 1 per cent and 0.78 per cent, respectively. Among sectoral indices, the Nifty PSU Bank index gained 2.34 per cent, while the Nifty IT index fell by same percentage.
V K Vijayakumar, chief investment strategist at Geojit Financial Services, said: “The market mood has suddenly changed after the release of the Fed minutes which indicate steeper rate tightening than what the market had discounted. Now, the focus will be on what the Fed chief Powel will say at the Jackson Hole symposium on Friday. If he sounds less hawkish there can be a relief rally; otherwise, the present drift will continue. The trend in US markets is hugely important for India since the correlation between the two markets is very high.”
“The sharp decline in India is also due to some profit taking by DIIs who have been sustained sellers in recent days. Profit booking is normal since the market had risen too fast (Nifty rallied 18% from the June lows) in 2 months. Investors can now buy the dips in a calibrated manner. High-quality financials, autos and capital goods can bounce back sharply when the market trend turns,” Vijayakumar added.
Global Cues
Asian shares were down for a sixth straight session on Tuesday after a renewed spike in European energy prices stoked fears of recession and pushed bond yields higher, while tipping the euro to 20-year lows. Benchmark gas prices in the European Union surged 13 per cent overnight to a record peak, having doubled in just a month to be 14 times higher than the average of the past decade.
Tokyo stocks opened lower Tuesday after jitters over the speed of rate hikes by the US Federal Reserve drove down Wall Street shares overnight. The benchmark Nikkei 225 index fell 1.00 per cent, or 288.64 points, to 28,505.86 in early trade, while the broader Topix index lost 0.84 per cent, or 16.73 points, to 1,975.86.
Wall Street ended sharply lower on Monday as investors fretted about a US Federal Reserve gathering later this week in Jackson Hole, Wyoming, that is expected to reinforce a strong commitment by the central bank to stamp out inflation.
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